OPERATIONS MANAGEMENT

TEGT3722
By

S.H Shaanika
sshaanika@unam.na
JEDS Campus
 CHAPTER NINE

HUMAN RESOURCES& JOB

DESIGN
 Lecture Outline
• Human Resources and Quality Management
• Changing Nature of Human Resources Management
• Contemporary Trends in Human Resources Management
• Employee Compensation
• Managing Diversity in Workplace
• Job Design
• Job Analysis
• Learning Curves
 Human Resources and Quality
Management
• Employees play important role
in quality management
• Malcolm Baldrige National
Quality Award winners have a
pervasive human resource
focus
• Employee training and
education are recognized as
necessary long-term
investments
• Employees have power to
make decisions that will
improve quality and customer
service
• Strategic goals for quality and
customer satisfaction require
teamwork and group
participation
Changing Nature of Human
Resources Management
• Scientific management
• Breaking down jobs into
elemental activities and
simplifying job design
• Jobs
• Comprise a set of tasks,
elements, and job motions (basic
physical movements)
• In a piece-rate wage system,
pay is based on output
• Assembly-line
• Production meshed with
principles of scientific
management
• Advantages of task
specialization
• High output, low costs, and
minimal training
• Disadvantages of task
specialization
• Boredom, lack of motivation,
and physical and mental
fatigue
 Employee Motivation
•Motivation
•willingness to work hard because
that effort satisfies an employee
need
•Improving Motivation
•positive reinforcement and
feedback
•effective organization and discipline
•fair treatment of people
•satisfaction of employee needs
•setting of work-related goals
•Improving Motivation (cont.)
•design of jobs to fit employee
•work responsibility
•empowerment
•restructuring of jobs when
necessary
•rewards based on company as well
as individual performance
•achievement of company goals
8-6
Evolution of Theories of
Employee Motivation
Abraham Maslow’s Douglas McGregor’s Frederick Herzberg’s
Pyramid of Human Theory X and Theory Y Hygiene/Motivation
Needs Theories
•Theory X Employee •Hygiene Factors
• Dislikes work • Company policies
• Must be coerced • Supervision
• Shirks responsibility • Working conditions
Self- • Little ambition • Interpersonal relations
actualization • Security top motivator • Salary, status, security
•Theory Y Employee •Motivation Factors
Esteem • Work is natural • Achievement
• Self-directed • Recognition
Social • Job interest
• Controlled
• Accepts responsibility • Responsibility
Safety/Security • Growth
• Makes good decisions
Physiological (financial) • Advancement
Contemporary Trends in Human
Resources Management
• Job training
• extensive and varied
• Empowerment
• giving employees authority to
• two of Deming’s 14 points
make decisions
refer to employee education
and training • Teams
• Cross Training • group of employees work on
problems in their immediate
• an employee learns more than
work area
one job
• Job rotation
• horizontal movement
between two or more jobs
according to a plan
 Contemporary Trends in Human Resources
Management
• Job enrichment
• vertical enlargement
• Alternative workplace
• nontraditional work location
• allows employees control over
their work
• Telecommuting
• horizontal enlargement • employees work electronically
• an employee is assigned a from a location they choose
complete unit of work with
defined start and end • Temporary and part-time
• Flexible work schedules employees
• part of a daily work schedule • mostly in fast-food and
in which employees can restaurant chains, retail
companies, package delivery
choose time of arrival and services, and financial firms
departure
Employee Compensation
• Types of pay
• hourly wage
• the longer someone works, the more s/he is paid
• individual incentive or piece rate
• employees are paid for the number of units they produce during
the workday
• straight salary
• common form of payment for management
• commissions
• usually applied to sales and salespeople
Employee Compensation
• Gainsharing
• an incentive plan joins employees in a common effort to
achieve company goals in which they share in the gains
• Profit sharing
• sets aside a portion of profits for employees at year’s end
Managing Diversity in Workplace
• Workforce has become more diverse
• 4 out of every 10 people entering workforce
during the decade from 1998 to 2008 will be
members of minority groups
• In 2000 U.S. Census showed that some minorities,
primarily Hispanic and Asian, are becoming
majorities
• Companies must develop a strategic approach
to managing diversity
 Affirmative Action and
Managing Diversity
• Affirmative action • Managing diversity
• an outgrowth of laws and • process of creating a work
regulations environment in which all
• government initiated and employees can contribute to
mandated their full potential in order to
• contains goals and timetables achieve a company’s goals
designed to increase level of • voluntary in nature, not
participation by women and mandated
minorities to attain parity • seeks to improve internal
levels in a company’s communications and
workforce interpersonal relationships,
• not directly concerned with resolve conflict, and increase
increasing company success or product quality, productivity,
increasing profits and efficiency
Diversity Management Programs

• Education
• Awareness
• Communication
• Fairness
• Commitment

2013 S.H SHAANIKA

Global Diversity Issues
• Cultural, language, geography
• significant barriers to managing a globally diverse workforce
• E-mails, faxes, Internet, phones, air travel
• make managing a global workforce possible but not necessarily
effective
• How to deal with diversity?
• identify critical cultural elements
• learn informal rules of communication
• use a third party who is better able to bridge cultural gap
• become culturally aware and learn foreign language
• teach employees cultural norm of organization
 Attributes of Good Job Design
• An appropriate degree of
repetitiveness
• An appropriate degree of
attention and mental
absorption
• Some employee responsibility
for decisions and discretion
• Employee control over their
own job
• Goals and achievement
feedback
• A perceived contribution to
a useful product or service
• Opportunities for personal
relationships and
friendships
• Some influence over the
way work is carried out in
groups
• Use of skills
Factors in Job Design
• Task analysis
• how tasks fit together to form a job
• Worker analysis
• determining worker capabilities and responsibilities for a job
• Environment analysis
• physical characteristics and location of a job
• Ergonomics
• fitting task to person in a work environment
• Technology and automation
• broadened scope of job design
Elements of Job Design
Job Analysis
• Method Analysis (work methods)
• Study methods used in the work included in the job to see
how it should be done
• Use a variety of charts that illustrate in different ways how
a job or work process is done
Process Flowchart Symbols
Operation:
An activity directly contributing to product or service
Transportation:
Moving the product or service from one location to another
Inspection:
Examining the product or service for completeness,
irregularities, or quality
Delay:
Process having to wait

Storage:
Store of the product or service
Process Flowchart
Worker-Machine Chart
Job Photo-Id Cards Date 10/14
Time Time
(min) Operator (min) Photo Machine

–1
Key in customer data 2.6 Idle
on card
–2
Feed data card in 0.4 Accept card
–3
Position customer for photo 1.0 Idle

–4 Take picture 0.6 Begin photo process

–5
Idle 3.4 Photo/card processed
–6

–7

–8 Inspect card & trim edges 1.2 Idle

–9
2013 S.H SHAANIKA 8-22
Worker-Machine Chart: Summary

Summary
Operator Time % Photo Machine Time %
Work 5.8 63 4.8 52
Idle 3.4 37 4.4 48
Total 9.2 min 100% 9.2 Min 100%

8-23
Motion Study
• Used to ensure efficiency of motion in a job
• Frank & Lillian Gilbreth
• Find one “best way” to do task
• Use videotape to study motions
 Motion Study Guidelines
• Efficient Use Of Human Body
• Work
•simplified, rhythmic and symmetric
• Hand/arm motions
•coordinated and simultaneous
• Employ full extent of physical capabilities
• Conserve energy
•use machines, minimize distances, use momentum
• Tasks
•simple, minimal eye contact and muscular effort, no
unnecessary motions, delays or idleness
 Motion Study Guidelines
• Efficient Arrangement of Workplace
• Tools, material, equipment - designated, easily accessible location
• Comfortable and healthy seating and work area
• Efficient Use of Equipment
• Equipment and mechanized tools enhance worker abilities
• Use foot-operated equipment to relieve hand/arm stress
• Construct and arrange equipment to fit worker use
Learning Curves
• Improvement rate of
workers as a job is

Processing time per unit

repeated
• Processing time per
unit decreases by a
constant percentage
each time output
doubles
Units produced
Learning Curves

Time required for the nth unit =

tn = t1n b
where:

tn = time required for nth unit produced

t1 = time required for first unit produced
n = cumulative number of units produced
b= where r is the learning curve percentage
ln r
(decimal coefficient)
ln 2
Learning Curves

Contract to produce 36 computers.

t1 = 18 hours, learning rate = 80%
What is time for 9th, 18th, 36th units?

t9 = (18)(9)ln(0.8)/ln 2 = (18)(9)-0.322
= (18)/(9)0.322 = (18)(0.493) = 8.874hrs
t18 = (18)(18)ln(0.8)/ln 2 = (18)(0.394) = 7.092hrs
t36 = (18)(36)ln(0.8)/ln 2 = (18)(0.315) = 5.674hrs
Learning Curves With Excel
Learning Curves With OM Tools
Learning Curve for
Mass Production Jobs

Processing time per unit

End of improvement

Standard
time

Units produced
 Learning Curves

• Advantages • Limitations
• planning labor
• product modifications
• planning budget negate learning curve effect
• determining • improvement can derive
scheduling from sources besides
requirements learning
• industry-derived learning
curve rates may be
inappropriate
THANK YOU